INFORMATIONAL

TO:

Division Superintendents

FROM:

William C. Bosher, Jr.
Superintendent of Public Instruction

SUBJECT:

Use of VPSA School Equipment Financing Notes Educational Technology

Chapter 912, 1996 Virginia Acts of Assembly (the 1996-98
Appropriation Act) authorizes the Virginia Public School
Authority to conduct an education technology grant program
in the spring of 1997. The full text of this language was
provided to you in Supts. Memo. No. 1 (Regulatory), dated
March 12, 1996. Since that time, we have had numerous calls
requesting information about the program. In the very near
future, you will be receiving information from the
Department relating to updating local technology plans, as
well as a question and answer document which will address
the questions we have heard to date.
Many calls, as well as some discussion with local
superintendents, have related to the ability to pay for
software, training, lease-purchases, and independent
consultants with the proceeds of the equipment notes, and
the ability to reimburse local divisions for purchases made
prior to the sale of the equipment notes.
PURCHASE OF SOFTWARE
It is important to remember that the primary purpose of this
educational technology program is to provide for (1)
networking, retrofitting, and upgrade of existing school
buildings, (2) network-ready multimedia microcomputers for
classrooms, and (3) network-ready microcomputers for student
use. It is important that we make substantial progress
toward meeting these priorities in order to continue to
receive this level of support from the Administration and
General Assembly.
Since the funding mechanism for this program is five-year
equipment notes, the proceeds of the notes must be used for
capital purchases. Further, it is necessary that on a
divisionwide basis, a balance be maintained between the
equipment and related software purchased in order to ensure
that the useful life of all purchases exceeds the life of
the equipment notes. For example, software may have a
useful life of one year, while a multimedia computer may
have a useful life of 7 years. Given those factors, it will
be necessary for a division to spend $13 for hardware for
every $1 of software purchased.
SUPTS. MEMO. NO. 113
June 14, 1996
Page 2
In addition, software can be purchased only if it meets all
of the following criteria:
a) It must be an integral part of the equipment which is
being purchased with the proceeds. (That is, it must be
necessary in order for the equipment to be utilized for
the intended purpose. For instance, if equipment is
being purchased for networking purposes, some software is
necessary in order for the network to be utilized as
planned. That software may be purchased with these
proceeds. In addition, if the equipment is to be used in
the classroom for instructional purposes, some
instructional software will be required in order for the
equipment to be used effectively. Again, software of
that type may be purchased); and,
b) The software being purchased must have a useful life
of more than 1 year; and,
c) The software must be included in the approved local
technology plan.
Invoices submitted for training, lease-purchase payments, or
independent consultants will not be reimbursed.
REIMBURSEMENT OF PRIOR PURCHASES
Local school divisions may make purchases prior to the sale
of the equipment notes and use the proceeds to reimburse
themselves. However, it is important that prior to paying
for those purchases, the local school board state its
intention to use the proceeds of the equipment notes to
reimburse that payment. This must be done through a
resolution adopted by the local school board. A sample
resolution is provided as an attachment to this memorandum.
I trust you will find this information helpful. If you have
questions relating to the financing, please call Mrs.
Kathryn S. Kitchen, Division Chief, Finance, at (804) 225-2025.
Questions relating to the educational technology
program should be directed to Dr. Ida J. Hill, Division
Chief, Technology, at (804) 225-2757.
WCB,Jr./kk
Attachment: This memo and its attachment will be sent to
the superintendent's office.